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Great Depression

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Great Depression. Brother can you spare a dime? OBJ #1 - Describe the ... OBJ #4 - Describe Franklin Roosevelt's approach to fixing the Great Depression. ... – PowerPoint PPT presentation

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Title: Great Depression


1
Great Depression
  • Brother can you spare a dime?

2
OBJ 1 - Describe the CAUSES and SPARK of the
Great Depression. How did Overproduction affect
both farmers and industry? What system collapsed
and caused millions to lose their savings?
Explain how buying on Margin created the Spark.
How did people lose money because of the spark?
  • I. OBJ 1- Cause Spark of the Depression
  • A. Causes of the Depression
  • 1. Overproduction, too much stuff (Factories
    and Farms)
  • a. Factory Workers begin to get layed-off
  • - Workers cannot buy goods, even more
    goods are overproduced
  • b. Farmers Cant Survive
  • -low prices (cant pay loans / make a
    living)
  • c. Supply Demand- Prices Drop
  • 2. Bank Failures
  • a. Banks close and loose
  • b. People default on loans (Cant
    pay Back)
  • c. Banks cannot cover their
    deposits, because it was lent out to bad
    creditors 5,000 banks close between
    1929-1932
  • d. People loose entire LIFE SAVINGS

3
1920s Problems
Factories making Too Much, Farms growing too much
BANKS Have NO PEOPLE LOST SAVINGS JOBS
NO ONE TO HELP!

Factories Fire Workers
(Dont need them) Farm Prices fall (Farmer
s cant make )
Banks Close because they have no money Loans
have not been paid back, cant give people
their savings
Farmers Factory Workers cant pay back loans to
Banks DEFAULT!!
4
Banks Close
Banks have no money to give people


People Default on Loans
People Loose savings
5
OBJ 1- Cause Sparks of Depression
  • B. SPARK!!! Of the Depression
  • 1. Stock Market Crash, Black Thur. Oct. 29,
    1929
  • a. Summer 1929, Investors begin to sell stocks
  • b. Supply Demand Again Massive Sell-Off and
    prices begin to ______
  • 2. How???
  • a. Buying on Margin (Borrowing )
  • - Buy stock by just paying a small
    portion of what the stock is worth
  • ex.- 100 shares at 10 1000 only pay 300
  • still owe 700
  • -Problem, stock crashes and you loose
    your money and cant payback stock broker
  • - stock broker cant pay back bank

6
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7
OBJ 1- Cause Sparks of Depression
  • QUICK REVIEW
  • Causes 1. Overproduction
  • 2. Bank Closings
  • Spark 1. Stock Market Crash
  • Results 1. Unemployment
  • 2. Life Savings Lost

8
OBJ 2 -Describe how the Great Depression
affected people. Who was the president when it
started, and what did he do to help? Who tried
to help the poor and what problems did they have?
How did people try to escape the Great
Depression?
  • II. OBJ. 2 Affects of the Depression
  • A. Jobless / Homeless
  • 1. 1930-1932 Jobless goes from 4 to 12
    million
  • 2. Houses are lost, people become homeless
  • 3. People are Desperate!!!!
  • B. Hatred for President Hoover
  • 1. Says it is NOT Governments job to fix the
    Poor
  • a. Say Churches and other groups should help
  • b. PROBLEM People too poor to help churches
    so churches cant help as much!!!
  • 2. People name Poor Places after Hoover
  • a.Hooverville- Shanty towns / Hoovermobile-
    cars pulled by mules
  • b. HOBOS- look for jobsHooverblankets-
    newspapers used as traveling the
    rails blankets by homeless

9
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11
OBJ 2- Affects of the Great Depression
  • 3. Bonus Army
  • a. WWI veterans who were promised a bonus in
    1945,
  • Veterans want it NOW (1932)
  • b. Veterans go to Washington and camp out
  • c. Hoover sends in Army (Eisenhower,
    MacArthur), used tear gas, machine guns,
    and burned the camp down

12
OBJ 2- Affects of the Great Depression
Wizard
  • C. Escaping the Depression
  • 1. Radio- Comedies, Soap Operas
  • 2. Movies- Shirley Temple, Child Actors
  • a. Snow White (first full-length
    animation)
  • b. Wizard of OZ
  • Small girl escaping the Dust Bowl
  • 3. Literature
  • a. Steinbeck, Grapes of Wrath
  • About a family of Okies escaping the Dust
    Bowl and how horribly they
    were treated

of
OZ
13
OBJ 3 - Describe the natural disaster that
affected the U.S. during the Great Depression.
What was the disasters nick-name? What caused
the disaster? Where did the people go to try
and escape their troubles and how were they
treated (nick-names for these people)?
  • III. OBJ. 3- Natural Disaster The DUST BOWL

  • A. Great Plains suffers a huge Drought (1931)
  • 1. Causes
  • a. Drought . . .no rain
  • b. New technology, tractors and steel
    plows tear-up extra sod that was holding onto
    soil, drought turns open soil into sand box
  • 2. Huge Dust storms cover Great Plains
  • B. Results
  • 1. Cant pay banks- Banks take Farms
  • 2. Many Great Plains farmers move to
    California,
  • a. Try to get jobs on large farms
  • b. Treated poorly in Calif. -
  • Oakies Arkies-Not wanted in West

14
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16
OBJ 4 - Describe Franklin Roosevelts approach
to fixing the Great Depression. What problem did
Roosevelt fix first and how? What was
Roosevelts plan called? Name the three major
goals of his plan?
  • IV. OBJ. 4 - The New Deal
  • A. President Roosevelt Elected (1932)
  • 1. NY Reformer (Governor)
  • 2. Brain Trust- Used professors and experts to
    develop programs to fight the depression
  • 3. Promised New Deal for Americans
  • a. Experiment and change to fight
    Depression

17
1932 Electoral College Votes
18
OBJ 4- Fixing the Depression New Deal
  • A. Fixing Banks!!!
  • 1. Declared a banking crisis
  • a. Closed ALL banks/ 4 day Bank Holiday
  • b. Emergency Banking Relief Act- Passed by
    Congress, allowed only sound banks to reopen,
    the rest remained closed
  • 2. Fireside Chat- told Americans by radio that
    the good banks were safer than
    in a mattress
  • (30 more chats that Am. listened to during
    his presidency)

19
OBJ 4- Fixing the Depression New Deal
  • C. A NEW DEAL!!!
  • 1. People Happy, Roosevelt sends bills to
    Congress
  • 2. NEW DEAL BEGINS- 3 Goals
  • a. Relief for Unemployed
  • b. Plans for Recovery
  • c. Reforms to Prevent more Depressions
  • 3. Major New Deal Programs
  • a. Unemployment
  • CCC- Civilian Conservation Corp
  • PWA- Public Works Administration
  • TVA- Tennessee Valley Authority
  • b. Recovery Plans
  • NRA- National Recovery Act
  • AAA- Agricultural Adjustment Admin.
  • c. Prevention Reforms
  • FDIC- Federal Deposit Insurance Corporation

  • (Have you seen this?)
  • SEC- Securities and Exchange Commision

20
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23
OBJ 4- Fixing the Depression New Deal
  • D. Results- Did NOT end the Depression
  • 1. Most of the Businessmen disliked New Deal
  • 2. Gave country confidence
  • a. Ended banking crisis
  • b. Helped with some Jobs
  • c. Infrastructure (buildings, schools,
    bridges, electricity, artwork)

24
OBJ 5 - Describe the reasons people opposed
Roosevelts plan. Give two (2) examples of
people who opposed Roosevelt. Why? What did the
Supreme Court say about the early part of the New
Deal? How did Roosevelt try and change their
minds? What was the result?
  • V. OBJ. 5 - Critics of the New Deal
  • A. BIG BUSINESS!!!! (Govt doing too
    much!)
  • 1. Govt Cant tell us what to do
  • B. FDR, not doing enough
  • 1. Share Our Wealth, Huey Long Gov. Louisiana
  • a. Heavy Tax on the wealthy
  • b. Give everyone- Home, Car,
  • c. Assassinated in 1935
  • 2. Father Coughlin, Radio Priest
  • a. Mad at FDR for not being tough enough on big
    business
  • b. Hates communist, Unions, Jews (Hitler?)
  • 3. Francis Townsend
  • a. Give pensions to anyone 60, would get jobs
    to
  • younger people

25
OBJ 5- Opponents of the New Deal (Against)
  • C. Supreme Court Reacts
  • 1. 11 New Deal Plans Ruled Unconstitutional
  • 2. Roosevelt Reacts Court Packing Scheme
  • a. Wants Court raised from 9 to 15
  • -President chooses new judges
  • -New judges would favor New Deal
  • 3. Friends Enemies Very Upset!!!
  • a. FDR wants TOOO much POWER
  • b. Congress with all friends wont pass
  • law for FDR
  • 4. FDR Wins Anyway- By 1938 New Judges
  • a. 1 Justice switches, 1 Justice retires

26
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